Corporate Communications Holcim Ltd Zürcherstrasse 156 CH-8645 Jona/Switzerland Phone +41 58 858 87 10 Fax +41 58 858 87 19 Media release Holcim posts solid operating result in difficult market environment Jona/Zurich, March 19, 2003 – The Holcim Group achieved its operative targets in 2002. Thanks to a balanced global and regional market presence and consistently pursued efficiency enhancement drives, the CHF 1.903 billion operating profit virtually matched the previous year's level despite heavy currency translation losses. Adjusted for currency effects and changes in the scope of consolidation, internal growth reached a solid 6.8 percent. Special factors led to a 37.7 percent decline in Group net income to CHF 506 million. The Board of Directors will be proposing to the Annual General Meeting that an unchanged dividend be paid. Sales trends and financial results Cement and clinker deliveries increased to 90.5 million t (2001: 84.3). Sales of aggregates were lifted to 92.1 million t (2001: 89.5), and ready-mix concrete volumes reached 25.3 million m 3 (2001: 25.5). On consolidated net sales of CHF 13.010 billion (2001: 13.644) Holcim achieved an operating EBITDA of CHF 3.341 billion (2001: 3.335), an operating profit of CHF 1.903 billion (2001: 1.945) and a Group net income after minority interests of CHF 506 million (2001: 812). Earnings per dividend-bearing bearer share came to CHF 12.97 (2001: 21.20). Cash flow from operating activities amounted to CHF 2.388 billion, matching the previous year’s level (2001: 2.402). Key influencers The decline in operating profit is attributable entirely to adverse currency factors. Excluding parity shifts and changes in the scope of consolidation, operating profit increased by 6.8 percent. Group regions Africa Middle East and Asia Pacific exerted a favorable impact on the operating result. Latin America again made a significant contribution to the operating result. The strong decline in Group net income after minority interests is primarily due to a CHF 120 million provision made in connection with a pending legal proceeding in Germany, write-offs of CHF 63 million on decommissioned non-operating facilities in Argentina, a CHF 60 million increase in earnings tax, and write-offs of CHF 31 million on Holcim’s investment in Swiss International Airlines. Investment activity Net investments in property, plant and equipment were down by CHF 478 million to CHF 1.252 billion. The sharp decline in investments reflects the completion of larger newbuild projects. Investments in existing plants to streamline and improve production and distribution processes as well as in environmental protection and occupational safety amounted to CHF 917 million (2001: 941). Proposed dividend The Board of Directors will be proposing to the Annual General Meeting on June 4, 2003 that an unchanged gross dividend of CHF 5 per bearer share be paid and CHF 1 per registered share. Outlook for 2003 Thanks to the restructuring measures implemented, Holcim is well equipped to achieve robust results even if the global economy takes a further turn for the worse. Holcim is resolutely focusing on sustainable efficiency increases, while subscribing to a strategy of selective investment and generating a solid free cash flow. The Board of Directors and Executive Committee are convinced that the Group is ideally positioned to profit to an above-average extent from an economic upswing. Key figures Holcim Group 2002 2001 +/-% Production capacity cement in million t 141.9 121.2 +17.1 Sales of cement and clinker in million t 90.5 84.3 +7.4 Sales of aggregates in million t 92.1 89.5 +2.9 Sales of ready-mix concrete in million m 3 25.3 25.5 -0.8 Personnel 51,115 47,362 +7.9 Net sales in million CHF 13,010 13,644 -4.6 Operating EBITDA in million CHF 3,341 3,335 +0.2 EBITDA in million CHF 3,399 3,574 -4.9 Operating profit in million CHF 1,903 1,945 -2.2 Group net income before minority interests in million CHF 797 1,031 -22.7 Group net income after minority interests in million CHF 506 812 -37.7 Cash flow from operating activities in million CHF 2,388 2,402 -0.6 Gearing in % 93.9 94.1 - * * * * * * * With majority and minority interests in more than 70 countries on all continents, Holcim is one of the world's leading suppliers of cement, as well as aggregates (gravel and sand), concrete and construction-related services. The Group employs a workforce of some 50,000. * * * * * * * This media release is also available in German and French. * * * * * * * Corporate Communications: phone +41 58 858 87 10 Investor Relations: phone +41 58 858 87 87 * * * * * * * Internet: www.holcim.com * * * * * * * Media conference: Wednesday, March 19, 2003, 09.00 a.m., Holcim, Hagenholzstrasse 85, 8050 Zurich. . Holcim Ltd Zürcherstrasse 156 CH-8645 Jona/Switzerland Phone +41 58 858 87 10 Fax +41 58 858 87 19 Media release Holcim posts solid operating result in difficult market environment. decommissioned non -operating facilities in Argentina, a CHF 60 million increase in earnings tax, and write-offs of CHF 31 million on Holcim s investment in Swiss International Airlines. Investment. the operating result. The strong decline in Group net income after minority interests is primarily due to a CHF 120 million provision made in connection with a pending legal proceeding in Germany,